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Suppose the demand curve for medical care services is perfectly inelastic. What will happen to the equilibrium price and quantity if supply increases?
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Suppose the demand curve for medical care services is perfectly inelastic. What will happen to the equilibrium price and quantity if supply increases?

User Sylvain Lesage
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Answer:

Equilibrium price would fall

Equilibrium quantity would remain unchanged

Step-by-step explanation:

A perfectly inelastic demand means the quantity demand doesn't change regardless of changes in price.

If supply increases, equilibrium price falls while quantity remains unchanged.

Refer to the image attached for a graphical explanation.

I hope my answer helps you

Suppose the demand curve for medical care services is perfectly inelastic. What will-example-1
User Mohd Belal
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